Renault F1 team made £7.4m loss in 2018

The Renault Formula 1 team generated more income in 2018 than in 2017 but also made a significant loss, newly released company accounts show.

Renault F1 team made £7.4m loss in 2018

The team's overall turnover rose from £136.3m in 2017 to £146.6m last year.

The latter figure was boosted in part by the rise from ninth place in the 2016 world championship to sixth in 2017, with the benefits being felt in the following season, as well as increased sponsorship.

However, despite the increased turnover, a modest profit of £1.1m in 2017 became a loss of £7.4m last year.

Read Also:

Renault says that the weak pound was one of two primary causes, noting that "despite the continued growth in turnover, financial results have deteriorated for the first time in three years, primarily driven by two factors.

"Expected turnover was negatively impacted by the strength of the British pound versus the Euro and the US dollar. Almost all turnover is denominated in Euro and US dollar, whilst the majority of costs are sterling denominated."

In addition, Renault says that "extra resources were added to in-season car development" as the team battled for fourth place.

The accounts also highlight the extent of the ongoing rebuilding programme. The average number of employees rose from 606 in 2017 to 676 in 2018, the increase of 70 represented by 32 in production, 25 in engineering, and 13 in administration. The changes contributed to an increase of over £9.4m in annual staff costs.

In another sign of the team's expansion, £10.6m of fixed assets – reflecting improvements to the Enstone factory infrastructure – were added, on top of the £34.6m already invested under Renault ownership in 2016-'17.

The company says that such spending is not yet over, noting that "whilst the major investment required initially is now complete there are major projects in the pipeline for 2019, and beyond, to achieve Renault's long-term aim of winning the constructors' championship."

Renault also makes it clear that it sees a potential future impact from Brexit, adding that "the company continues to monitor Brexit developments and to put plans in place for different scenarios, including whether the impact can be mitigated by utilising the operations the group has in the European Union."

shares
comments
The 2020 spat forcing F1 to break its own rules
Previous article

The 2020 spat forcing F1 to break its own rules

Next article

Pirelli set for last 2020 tyre test amid push for more time

Pirelli set for last 2020 tyre test amid push for more time
Can Mercedes break Formula 1's cycle of doom? Prime

Can Mercedes break Formula 1's cycle of doom?

OPINION: Teams that have dominated for long periods throughout Formula 1's history often take years to get back to the top of the tree once they've slipped down. But it remains to be seen whether the same will happen to Mercedes after a challenging 2022 season

Formula 1
Nov 24, 2022
What hurt Perez most in his ill-fated fight for second in Abu Dhabi Prime

What hurt Perez most in his ill-fated fight for second in Abu Dhabi

Arguably the favourite in the battle to finish second-best in 2022's Formula 1 standings, Sergio Perez's two-stop strategy at Abu Dhabi couldn't take him ahead of Charles Leclerc when the music stopped - and several key factors ultimately precluded him from the much-coveted runner-up spot.

Formula 1
Nov 23, 2022
The Abu Dhabi momentum that can propel Leclerc and Ferrari to F1 2023 success Prime

The Abu Dhabi momentum that can propel Leclerc and Ferrari to F1 2023 success

OPINION: Charles Leclerc achieved his target of sealing runner-up in the 2022 world championship with a masterful drive behind Max Verstappen in Abu Dhabi. And that race contained key elements that may help him, and Ferrari, go one better in Formula 1 2023

Formula 1
Nov 22, 2022
2022 Abu Dhabi Grand Prix Driver Ratings Prime

2022 Abu Dhabi Grand Prix Driver Ratings

The 2022 Formula 1 season came to a close at the Yas Marina Circuit, where the battle for second in the standings was decided, the wins in a season record extended and a retiring four-time world champion bowed out on a high. Here's how we rated the drivers

Formula 1
Nov 21, 2022
The factors that stopped Perez catching Leclerc in Verstappen's Abu Dhabi triumph Prime

The factors that stopped Perez catching Leclerc in Verstappen's Abu Dhabi triumph

Max Verstappen ended the 2022 Formula 1 season in fitting fashion with a dominant drive to victory in the Abu Dhabi Grand Prix. But behind him, early season rival Charles Leclerc achieved his target of securing the runner-up spot with a well-executed a one-stop strategy to beat Sergio Perez, whose pursuit on a two-stop strategy was hampered by several critical factors

Formula 1
Nov 21, 2022
Why the impact of FIA’s anti-bouncing metric is hard to judge Prime

Why the impact of FIA’s anti-bouncing metric is hard to judge

Faced with drivers complaining about the long-term health effects of car ‘bouncing’, the FIA stepped in to deal with it. JAKE BOXALL-LEGGE explains how the so-called ‘Aerodynamic Oscillation Metric’ works, and asks if it is fit for purpose?

Formula 1
Nov 20, 2022
Where Vettel stands in the list of the greatest F1 drivers Prime

Where Vettel stands in the list of the greatest F1 drivers

As Sebastian Vettel’s Formula 1 career draws to a close, figuring out where he fits into the greatest of all time order is a tough and subjective call. With the aid of statistics, attributes and history, here’s how the four-time world champion stacks up in the debate

Formula 1
Nov 19, 2022
The omen Ferrari hopes to continue by ending its Abu Dhabi jinx Prime

The omen Ferrari hopes to continue by ending its Abu Dhabi jinx

It’s been an unlucky 13 for Ferrari in Abu Dhabi since the first Formula 1 race was held there in 2009. But if the Scuderia can finally win at the Yas Marina Circuit in 2022, then BEN EDWARDS feels this could bode well for even greater success in 2023

Formula 1
Nov 17, 2022